Productivity analysis of Georgia agriculture
McKissick, John C.
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Georgia agricultural output has followed an increasing trend since 1950, and the 2006 quantity index of aggregate output reached a historical high. In 2006, Georgia farm gate value of agricultural products was $10.4 billion. Total output impact of agricultural production and directly related processing was $55.2 billion, representing 8.1% of state output value. Expansion of agricultural production leads to economic growth in other sectors of the state economy. Agricultural production impacts agribusinesses in the Georgia economy through backward linkages related to inputs, as well as forward linkages related to food and fiber processing. Increases in output have been accompanied by relatively lower levels of input increases. The Bennet-Bowley measure of productivity indicates an average annual productivity increase of 2.8% during 1960-2006. Productivity increases explain how the Georgia agricultural economy is expanding during a period when farm acreage and the number of farms are declining. Technological innovations have increased output and have been applied by Georgia agricultural producers to increase farm profits.